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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9081 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9081

   To provide for emergency tax relief for taxpayers affected by the 
severe storms, flooding, straight-line winds, and tornadoes in certain 
                             Iowa counties.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2024

  Mr. Feenstra (for himself, Mr. Nunn of Iowa, Mrs. Hinson, and Mrs. 
Miller-Meeks) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
   To provide for emergency tax relief for taxpayers affected by the 
severe storms, flooding, straight-line winds, and tornadoes in certain 
                             Iowa counties.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Storm Recovery and Community 
Restoration Act''.

SEC. 2. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.

    (a) Tax-Favored Withdrawals From Retirement Plans.--
            (1) In general.--Section 72(t) of the Internal Revenue Code 
        of 1986 shall not apply to any qualified Iowa disaster 
        distribution.
            (2) Aggregate dollar limitation.--
                    (A) In general.--For purposes of this subsection, 
                the aggregate amount of distributions received by an 
                individual which may be treated as qualified Iowa 
                disaster distributions for any taxable year shall not 
                exceed the excess (if any) of--
                            (i) $100,000, over
                            (ii) the aggregate amounts treated as 
                        qualified Iowa disaster distributions received 
                        by such individual for all prior taxable years.
                    (B) Treatment of plan distributions.--If a 
                distribution to an individual would (without regard to 
                subparagraph (A)) be a qualified Iowa disaster 
                distribution, a plan shall not be treated as violating 
                any requirement of the Internal Revenue Code of 1986 
                merely because the plan treats such distribution as a 
                qualified Iowa disaster distribution, unless the 
                aggregate amount of such distributions from all plans 
                maintained by the employer (and any member of any 
                controlled group which includes the employer) to such 
                individual exceeds $100,000.
                    (C) Controlled group.--For purposes of subparagraph 
                (B), the term ``controlled group'' means any group 
                treated as a single employer under subsection (b), (c), 
                (m), or (o) of section 414 of the Internal Revenue Code 
                of 1986.
            (3) Amount distributed may be repaid.--
                    (A) In general.--Any individual who receives a 
                qualified Iowa disaster distribution may, at any time 
                during the 3-year period beginning on the day after the 
                date on which such distribution was received, make one 
                or more contributions in an aggregate amount not to 
                exceed the amount of such distribution to an eligible 
                retirement plan of which such individual is a 
                beneficiary and to which a rollover contribution of 
                such distribution could be made under section 402(c), 
                403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the 
                Internal Revenue Code of 1986, as the case may be.
                    (B) Treatment of repayments of distributions from 
                eligible retirement plans other than iras.--For 
                purposes of the Internal Revenue Code of 1986, if a 
                contribution is made pursuant to subparagraph (A) with 
                respect to a qualified Iowa disaster distribution from 
                an eligible retirement plan other than an individual 
                retirement plan, then the taxpayer shall, to the extent 
                of the amount of the contribution, be treated as having 
                received the qualified Iowa disaster distribution in an 
                eligible rollover distribution (as defined in section 
                402(c)(4) of such Code) and as having transferred the 
                amount to the eligible retirement plan in a direct 
                trustee to trustee transfer within 60 days of the 
                distribution.
                    (C) Treatment of repayments for distributions from 
                iras.--For purposes of the Internal Revenue Code of 
                1986, if a contribution is made pursuant to 
                subparagraph (A) with respect to a qualified Iowa 
                disaster distribution from an individual retirement 
                plan (as defined by section 7701(a)(37) of such Code), 
                then, to the extent of the amount of the contribution, 
                the qualified Iowa disaster distribution shall be 
                treated as a distribution described in section 
                408(d)(3) of such Code and as having been transferred 
                to the eligible retirement plan in a direct trustee to 
                trustee transfer within 60 days of the distribution.
            (4) Definitions.--For purposes of this subsection--
                    (A) Qualified iowa disaster distribution.--Except 
                as provided in paragraph (2), the term ``qualified Iowa 
                disaster distribution'' means any distribution from an 
                eligible retirement plan made on or after the 
                applicable date, and before January 1, 2026, to an 
                individual whose principal place of abode on the 
                applicable date, is located in the Iowa disaster area.
                    (B) Iowa disaster area.--For purposes of paragraph 
                (1), the term ``Iowa disaster area'' means--
                            (i) any area within the Iowa counties of 
                        Clarke, Harrison, Mills, Polk, Pottawattamie, 
                        Ringgold, Shelby, or Union with respect to 
                        which a major disaster was declared, during the 
                        period beginning on April 26, 2024, and ending 
                        on the date which is 60 days after the date of 
                        the enactment of this Act, by the President 
                        under section 401 of the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act, 
                        and
                            (ii) any area within the Iowa counties of 
                        Clay, Emmet, Lyon, Plymouth, or Sioux with 
                        respect to which a major disaster was declared, 
                        during the period beginning on June 16, 2024, 
                        and ending on the date which is 60 days after 
                        the date of the enactment of this Act, by the 
                        President under section 401 of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act.
                    (C) Applicable date.--For purposes of this 
                paragraph, the term ``applicable date'' means--
                            (i) in the case of a disaster area 
                        described in subparagraph (B)(i), April 26, 
                        2024, and
                            (ii) in the case of a disaster area 
                        described in subparagraph (B)(ii), June 16, 
                        2024.
                    (D) Eligible retirement plan.--The term ``eligible 
                retirement plan'' has the meaning given such term by 
                section 402(c)(8)(B) of the Internal Revenue Code of 
                1986.
            (5) Income inclusion spread over 3-year period.--
                    (A) In general.--In the case of any qualified Iowa 
                disaster distribution, unless the taxpayer elects not 
                to have this paragraph apply for any taxable year, any 
                amount required to be included in gross income for such 
                taxable year shall be so included ratably over the 3-
                taxable-year period beginning with such taxable year.
                    (B) Special rule.--For purposes of subparagraph 
                (A), rules similar to the rules of subparagraph (E) of 
                section 408A(d)(3) of the Internal Revenue Code of 1986 
                shall apply.
            (6) Special rules.--
                    (A) Exemption of distributions from trustee to 
                trustee transfer and withholding rules.--For purposes 
                of sections 401(a)(31), 402(f), and 3405 of the 
                Internal Revenue Code of 1986, qualified Iowa disaster 
                distributions shall not be treated as eligible rollover 
                distributions.
                    (B) Qualified iowa disaster distributions treated 
                as meeting plan distribution requirements.--For 
                purposes the Internal Revenue Code of 1986, a qualified 
                Iowa disaster distribution shall be treated as meeting 
                the requirements of sections 401(k)(2)(B)(i), 
                403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such 
                Code.
    (b) Recontributions of Withdrawals for Home Purchases.--
            (1) Recontributions.--
                    (A) In general.--Any individual who received a 
                qualified distribution may, during the period beginning 
                on the applicable date, and ending on December 31, 
                2024, make one or more contributions in an aggregate 
                amount not to exceed the amount of such qualified 
                distribution to an eligible retirement plan (as defined 
                in section 402(c)(8)(B) of the Internal Revenue Code of 
                1986) of which such individual is a beneficiary and to 
                which a rollover contribution of such distribution 
                could be made under section 402(c), 403(a)(4), 
                403(b)(8), or 408(d)(3), of such Code, as the case may 
                be.
                    (B) Treatment of repayments.--Rules similar to the 
                rules of subparagraphs (B) and (C) of subsection (a)(3) 
                shall apply for purposes of this subsection.
            (2) Qualified distribution.--For purposes of this 
        subsection, the term ``qualified distribution'' means any 
        distribution--
                    (A) described in section 401(k)(2)(B)(i)(IV), 
                403(b)(7)(A)(ii) (but only to the extent such 
                distribution relates to financial hardship), 
                403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue 
                Code of 1986,
                    (B) received on or after the applicable date, and 
                before December 31, 2024, and
                    (C) which was to be used to purchase or construct a 
                principal residence in the Iowa disaster area.
            (3) Applicable date.--For purposes of this subsection, the 
        term ``applicable date'' means--
                    (A) in the case of a qualified distribution 
                received with respect to the Iowa disaster area 
                described in subsection (a)(4)(B)(i), April 26, 2024, 
                and
                    (B) in the case of a qualified distribution 
                received with respect to the Iowa disaster area 
                described in subsection (a)(4)(B)(ii), June 14, 2024.
    (c) Loans From Qualified Plans.--
            (1) Increase in limit on loans not treated as 
        distributions.--In the case of any loan from a qualified 
        employer plan (as defined under section 72(p)(4) of the 
        Internal Revenue Code of 1986) to a qualified individual made 
        during the period beginning on the date of the enactment of 
        this Act and ending on December 31, 2025--
                    (A) clause (i) of section 72(p)(2)(A) of such Code 
                shall be applied by substituting ``$100,000'' for 
                ``$50,000'', and
                    (B) clause (ii) of such section shall be applied by 
                substituting ``the present value of the nonforfeitable 
                accrued benefit of the employee under the plan'' for 
                ``one-half of the present value of the nonforfeitable 
                accrued benefit of the employee under the plan''.
            (2) Delay of repayment.--In the case of a qualified 
        individual with an outstanding loan on or after the qualified 
        beginning date from a qualified employer plan (as defined in 
        section 72(p)(4) of the Internal Revenue Code of 1986)--
                    (A) if the due date pursuant to subparagraph (B) or 
                (C) of section 72(p)(2) of such Code for any repayment 
                with respect to such loan occurs during the period 
                beginning on the qualified beginning date and ending on 
                December 31, 2025, such due date shall be delayed for 1 
                year,
                    (B) any subsequent repayments with respect to any 
                such loan shall be appropriately adjusted to reflect 
                the delay in the due date under paragraph (1) and any 
                interest accruing during such delay, and
                    (C) in determining the 5-year period and the term 
                of a loan under subparagraph (B) or (C) of section 
                72(p)(2) of such Code, the period described in 
                subparagraph (A) shall be disregarded.
            (3) Qualified individual.--For purposes of this subsection, 
        the term ``qualified individual'' means an individual whose 
        principal place of abode on the applicable date described in 
        subsection (a)(4)(C) is located in the Iowa disaster area and 
        who has sustained an economic loss by reason of severe storms, 
        flooding, straight-line winds, or tornadoes beginning on such 
        date.
            (4) Qualified beginning date.--For purposes of this 
        subsection, the qualified beginning date is the applicable date 
        described in subsection (a)(4)(C).
    (d) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any 
        amendment to any plan or annuity contract, such plan or 
        contract shall be treated as being operated in accordance with 
        the terms of the plan during the period described in paragraph 
        (2)(B)(i).
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to any provision of this 
                        section, or pursuant to any regulation issued 
                        by the Secretary or the Secretary of Labor 
                        under any provision of this section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2026, or such later date as the Secretary may 
                        prescribe.
                In the case of a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 1986), 
                clause (ii) shall be applied by substituting the date 
                which is 2 years after the date otherwise applied under 
                clause (ii).
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the date that this 
                                section or the regulation described in 
                                subparagraph (A)(i) takes effect (or in 
                                the case of a plan or contract 
                                amendment not required by this section 
                                or such regulation, the effective date 
                                specified by the plan), and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan or contract 
                                amendment is adopted),
                the plan or contract is operated as if such plan or 
                contract amendment were in effect, and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.

SEC. 3. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE 
              CONTRIBUTIONS.

    (a) In General.--Except as otherwise provided in paragraph (2), 
subsection (b) of section 170 of the Internal Revenue Code of 1986 
shall not apply to qualified contributions and such contributions shall 
not be taken into account for purposes of applying subsections (b) and 
(d) of such section to other contributions.
    (b) Treatment of Excess Contributions.--For purposes of section 170 
of the Internal Revenue Code of 1986--
            (1) Individuals.--In the case of an individual--
                    (A) Limitation.--Any qualified contribution shall 
                be allowed only to the extent that the aggregate of 
                such contributions does not exceed the excess of the 
                taxpayer's contribution base (as defined in 
                subparagraph (G) of section 170(b)(1) of such Code) 
                over the amount of all other charitable contributions 
                allowed under section 170(b)(1) of such Code.
                    (B) Carryover.--If the aggregate amount of 
                qualified contributions made in the contribution year 
                (within the meaning of section 170(d)(1) of such Code) 
                exceeds the limitation of clause (i), such excess shall 
                be added to the excess described in the portion of 
                subparagraph (A) of such section which precedes clause 
                (i) thereof for purposes of applying such section.
            (2) Corporations.--In the case of a corporation--
                    (A) Limitation.--Any qualified contribution shall 
                be allowed only to the extent that the aggregate of 
                such contributions does not exceed the excess of the 
                taxpayer's taxable income (as determined under 
                paragraph (2) of section 170(b) of such Code) over the 
                amount of all other charitable contributions allowed 
                under such paragraph.
                    (B) Carryover.--Rules similar to the rules of 
                subparagraph (A)(ii) shall apply for purposes of this 
                subparagraph.
    (c) Exception to Overall Limitation on Itemized Deductions.--So 
much of any deduction allowed under section 170 of the Internal Revenue 
Code of 1986 as does not exceed the qualified contributions paid during 
the taxable year shall not be treated as an itemized deduction for 
purposes of section 68 of such Code.
    (d) Qualified Contributions.--
            (1) In general.--For purposes of this subsection, the term 
        ``qualified contribution'' means any charitable contribution 
        (as defined in section 170(c) of the Internal Revenue Code of 
        1986) if--
                    (A) such contribution--
                            (i) is paid during the period beginning on 
                        April 24, 2024, and ending on December 31, 
                        2024, in cash to an organization described in 
                        section 170(b)(1)(A) of such Code, and
                            (ii) is made for relief efforts in the Iowa 
                        disaster area,
                    (B) the taxpayer obtains from such organization 
                contemporaneous written acknowledgment (within the 
                meaning of section 170(f)(8) of such Code) that such 
                contribution was used (or is to be used) for relief 
                efforts described in clause (i)(II), and
                    (C) the taxpayer has elected the application of 
                this subsection with respect to such contribution.
            (2) Iowa disaster area.--For purposes of paragraph (1), the 
        term ``Iowa disaster area'' has the meaning given such term in 
        section 2(a)(4)(B).
            (3) Exception.--Such term shall not include a contribution 
        by a donor if the contribution is--
                    (A) to an organization described in section 
                509(a)(3) of the Internal Revenue Code of 1986, or
                    (B) for the establishment of a new, or maintenance 
                of an existing, donor advised fund (as defined in 
                section 4966(d)(2) of such Code).
            (4) Application of election to partnerships and s 
        corporations.--In the case of a partnership or S corporation, 
        the election under subparagraph (A)(iii) shall be made 
        separately by each partner or shareholder.
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